MEXICO CITY--(BUSINESS WIRE)--Macquarie Mexican REIT (MMREIT) (BMV:FIBRAMQ) today announced that it has completed its acquisition of two retail properties located in the Mexico City Metropolitan Area (MCMA) from companies controlled by Fondo Comercial Mexicano for Ps.2.0 billion (approximately US$153.3 million). Including transaction costs and property tax, the total acquisition value is Ps.2.1 billion (approximately US$158.4 million) based on an exchange rate of 13.07 Ps/USD.
The properties, Coacalco Power Center and Tecamac Power Center, have a combined 134,246 square meters (approximately 1.45 million square feet) of gross leasable area and an occupancy rate of 98.7% (as of October 31, 2013). MMREIT estimates the portfolio will generate approximately Ps.166.8 million (approximately US$12.8 million) of net operating income (NOI) and Ps.93.3 million (approximately US$7.1 million) of funds from operations (FFO) in 2014. Estimated projected NOI includes forecast rental income plus maintenance recoveries and parking income, minus property operating expenses (including the estimated property administration fee) for the full year 2014. FFO is equal to NOI minus corporate general and administrative expenses, debt service and management fees.
“As I noted previously, this acquisition is consistent with our strategy of diversifying our portfolio across Mexico’s growing retail sector,” said Jaime Lara, Chief Executive Officer of MMREIT. “We are excited about the long-term growth potential this acquisition provides as these properties are high quality, strategically located and occupied by strong anchor tenants. We believe these two properties are well-positioned to benefit from growth in Mexico’s middle class, which is driving retail and consumer spending across the country.”
The transaction was funded with Ps$940.0 million (approximately US$71.9 million) of senior debt drawn under a new credit facility with Banamex, Ps$230.7 million (approximately US$17.6 million) drawn under a fund-level VAT facility with Macquarie Bank Limited and Ps$1.1 billion (approximately US$86.5 million) of available cash.
“The formal commencement of our relationship with Banamex is a very important step for MMREIT, and one that further extends locally the global relationship between our two institutions,” added Lara.
MMREIT has now closed on two of the three acquisitions that it has announced this year. MMREIT expects that the three acquisitions announced year-to-date will generate FFO in a range of between Ps.0.48 and Ps.0.52 (approximately US$0.037 and US$0.040) per CBFI on an annualized basis when all three have closed. Those acquisitions are expected to produce FFO of approximately Ps.313.2 million (approximately US$24.0 million) on an annualized basis when closed.
MMREIT’s portfolio now consists of 259 industrial properties and two retail properties totaling 30.0 million square feet (2.7 million square meters) of gross leasable area across Mexico.
About Macquarie Mexican REIT
Macquarie Mexican REIT (MMREIT) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversíon en bienes raices), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. MMREIT’s portfolio consists of 259 industrial properties and two retail properties located in 21 cities across 16 Mexican states (as of November 4, 2013). For additional information about MMREIT, please visit www.macquarie.com/mmreit.
About Macquarie Group
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. Macquarie employs approximately 13,900 people and has assets under management of over A$385 billion (as of September 30, 2013).
Macquarie Infrastructure and Real Assets, a division of Macquarie, is a leading global alternative asset manager specializing in investments across infrastructure, real estate, agriculture and energy. Macquarie Infrastructure and Real Assets manages 49 funds with US$101 billion of assets under management across 25 countries (as of March 31, 2013).
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